No Korean rate cut despite global woes

Central bank cites bigger inflation risk; easing still expected

SEOUL -- The Bank of Korea set its key policy interest rate at 5% Friday, unchanged from the former target level for the overnight call rate, amid increased fear over persistently high inflation.

Given the Bank of Korea's heightened concern over inflation -- largely fanned by record oil prices -- economists said the central bank isn't likely to cut its policy rate at its next rate-setting meeting.